Direct procurement for automotive and industrial manufacturing: Collaborate to deliver profitable, innovative, and sustainable products
SAP Ariba solutions | Public
Direct procurement for automotive and
industrial manufacturing
Collaborate to deliver profitable, innovative, and
sustainable products
Meeting direct sourcing needs in automotive and industrial manufacturing
Automotive and industrial manufacturing companies face distinct direct-sourcing
challenges. SAP Ariba Direct Materials Sourcing for Automotive and Industrial
Manufacturing in SAP S/4HANA Cloud Private Edition transforms procurement by
comprehensively addressing the nuances that surround unique sourcing
requirements for highly engineered products. The solution enables you to create
products that not only cost less to produce but are also innovative, sustainable,
and high quality, accelerating time to market.
SAP Ariba Direct Materials Sourcing for Automotive
and Industrial Manufacturing in SAP S/4HANA
Cloud Private Edition empowers your procurement
and supply management teams to elevate collabo-
ration and forge strategic contracts for direct mate-
rials. These steps are crucial for highly engineered
products such as raw materials, components, and
assemblies. In industry sectors where rapidly
advancing technology and shifting market demands
necessitate agile responses and collaborative inno-
vation with partners, this solution enhances both
supplier and cross-functional team collaboration in
product development, specification management,
sourcing, and contracting.
Empower your procurement and
supply management teams to elevate
collaboration and forge strategic
partnerships for direct materials.
It helps accelerate time to market and time to vol-
ume for new product introductions and reduces
both the costs and carbon footprint associated
with direct materials. Additionally, it shares a com-
mon data model with SAP S/4HANA Cloud, which
provides a unified digital thread across product
design, demand management, sourcing and con-
tracts, procurement, and logistics execution, as
well as quality management processes. This helps
enhance operational efficiency and market
responsiveness.
Direct procurement for automotive and
industrial manufacturing
Collaborate to deliver profitable, innovative, and
sustainable products
Meeting direct sourcing needs in automotive and industrial manufacturing
Automotive and industrial manufacturing companies face distinct direct-sourcing
challenges. SAP Ariba Direct Materials Sourcing for Automotive and Industrial
Manufacturing in SAP S/4HANA Cloud Private Edition transforms procurement by
comprehensively addressing the nuances that surround unique sourcing
requirements for highly engineered products. The solution enables you to create
products that not only cost less to produce but are also innovative, sustainable,
and high quality, accelerating time to market.
SAP Ariba Direct Materials Sourcing for Automotive
and Industrial Manufacturing in SAP S/4HANA
Cloud Private Edition empowers your procurement
and supply management teams to elevate collabo-
ration and forge strategic contracts for direct mate-
rials. These steps are crucial for highly engineered
products such as raw materials, components, and
assemblies. In industry sectors where rapidly
advancing technology and shifting market demands
necessitate agile responses and collaborative inno-
vation with partners, this solution enhances both
supplier and cross-functional team collaboration in
product development, specification management,
sourcing, and contracting.
Empower your procurement and
supply management teams to elevate
collaboration and forge strategic
partnerships for direct materials.
It helps accelerate time to market and time to vol-
ume for new product introductions and reduces
both the costs and carbon footprint associated
with direct materials. Additionally, it shares a com-
mon data model with SAP S/4HANA Cloud, which
provides a unified digital thread across product
design, demand management, sourcing and con-
tracts, procurement, and logistics execution, as
well as quality management processes. This helps
enhance operational efficiency and market
responsiveness.
76346enUS (24/05)
© 2024 SAP SE or an SAP affiliate company. All rights reserved.
See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers,
disclosures, or restrictions related to this material.
Robust functionality for automotive and
industrial manufacturers
Designed to meet the specific needs of automotive and
industrial manufacturing companies, SAP Ariba Direct Materials
Sourcing for Automotive and Industrial Manufacturing in
SAP S/4HANA Cloud Private Edition delivers comprehen-
sive functionality that supports:
• Forward sourcing for new product introduction (NPI), with
smooth integration into advanced procurement planning
capabilities that support complex, multiyear NPI programs
• Demand-driven sourcing in multinational or multidivisional
settings, enabling the aggregation of demand from multi-
ple ERP systems, central sourcing and contracting, and the
distribution of contracts to regions or divisions for down-
stream procurement and logistics execution
• Comprehensive source-to-contract capabilities that cater
to industry-specific nuances, including cost breakdowns,
carbon footprint analysis, complex location-specific pric-
ing conditions, collaborative contract document authoring,
and commodity index-based contract pricing
• Collaborative design or specification through integration
with product lifecycle management systems
• A flexible model for supplier collaboration, allowing
integration into a multi-enterprise public network or
embedding within a private B2B network
• Enhanced efficiency and the ability to streamline automation
in supplier negotiations along with pricing conditions,
including robust features such as multiround renegotiation
capabilities with suppliers and flexibility in pricing condi-
tions, catering to volume discounts and time-based pricing
• Consistent company-wide application of procurement pol-
icies through configurable workflows for process controls and
approved supplier lists based on multiple material groups
and company codes
• Smooth access to material masters, which automatically
generate operational documents such as contracts and
purchase orders that align with your awarded sourcing and
adhere to relevant terms and conditions
• Integration with commodity index-based pricing capabili-
ties to simplify the operationalization of pricing terms
Learn more
It’s time to overcome the challenges of traditional sourcing
solutions for managing costs for highly engineered products.
For more information, please visit us online.
Harness the power
of the software
SAP Ariba Direct Materials Sourc-
ing for Automotive and Industrial
Manufacturing centralizes opera-
tional contract management,
regardless of the number of ERPs,
legal entities, or company codes
your business handles. This
enables the creation of central
contracts that can be enforced
locally, which increases compli-
ance and boosts savings.
Realize the benefits
With this solution, you can:
• Accelerate time to market
• Collaborate and innovate with
your supply chain partners
• Cut down and accurately fore-
cast material and service costs
• Enhance operational compli-
ance and accuracy without the
complexities and costs of mas-
ter data integrations or
replications
• Streamline supplier awards
while helping ensure contract
compliance worldwide and
locally
• Harness economies of scale
across diverse ERP systems
globally and locally
© 2024 SAP SE or an SAP affiliate company. All rights reserved.
See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers,
disclosures, or restrictions related to this material.
Robust functionality for automotive and
industrial manufacturers
Designed to meet the specific needs of automotive and
industrial manufacturing companies, SAP Ariba Direct Materials
Sourcing for Automotive and Industrial Manufacturing in
SAP S/4HANA Cloud Private Edition delivers comprehen-
sive functionality that supports:
• Forward sourcing for new product introduction (NPI), with
smooth integration into advanced procurement planning
capabilities that support complex, multiyear NPI programs
• Demand-driven sourcing in multinational or multidivisional
settings, enabling the aggregation of demand from multi-
ple ERP systems, central sourcing and contracting, and the
distribution of contracts to regions or divisions for down-
stream procurement and logistics execution
• Comprehensive source-to-contract capabilities that cater
to industry-specific nuances, including cost breakdowns,
carbon footprint analysis, complex location-specific pric-
ing conditions, collaborative contract document authoring,
and commodity index-based contract pricing
• Collaborative design or specification through integration
with product lifecycle management systems
• A flexible model for supplier collaboration, allowing
integration into a multi-enterprise public network or
embedding within a private B2B network
• Enhanced efficiency and the ability to streamline automation
in supplier negotiations along with pricing conditions,
including robust features such as multiround renegotiation
capabilities with suppliers and flexibility in pricing condi-
tions, catering to volume discounts and time-based pricing
• Consistent company-wide application of procurement pol-
icies through configurable workflows for process controls and
approved supplier lists based on multiple material groups
and company codes
• Smooth access to material masters, which automatically
generate operational documents such as contracts and
purchase orders that align with your awarded sourcing and
adhere to relevant terms and conditions
• Integration with commodity index-based pricing capabili-
ties to simplify the operationalization of pricing terms
Learn more
It’s time to overcome the challenges of traditional sourcing
solutions for managing costs for highly engineered products.
For more information, please visit us online.
Harness the power
of the software
SAP Ariba Direct Materials Sourc-
ing for Automotive and Industrial
Manufacturing centralizes opera-
tional contract management,
regardless of the number of ERPs,
legal entities, or company codes
your business handles. This
enables the creation of central
contracts that can be enforced
locally, which increases compli-
ance and boosts savings.
Realize the benefits
With this solution, you can:
• Accelerate time to market
• Collaborate and innovate with
your supply chain partners
• Cut down and accurately fore-
cast material and service costs
• Enhance operational compli-
ance and accuracy without the
complexities and costs of mas-
ter data integrations or
replications
• Streamline supplier awards
while helping ensure contract
compliance worldwide and
locally
• Harness economies of scale
across diverse ERP systems
globally and locally